Ukraine Gas Supplies In Doubt As Winter Approaches

Ukraine did not manage to secure Russian gas deliveries on Thursday as winter approaches.

EU-hosted negotiations were postponed after running late into the night, Energy Minister Alexander Novak and the head of Russian gas firm Gazprom told Russian news agencies. They would resume later in the day if Ukraine and the EU had a firm financing deal in place, Gazprom head Alexei Miller said.

There has already been agreement on the price Kiev will pay for gas over the winter, the amount to be supplied and the repayment of some $3.1 billion in unpaid Ukrainian bills. Unfortunately Moscow, which cut off vital pipelines in June as the conflict with Ukraine and the West deepened, wants more assurances that Kiev can pay some $1.6 billion for new gas up front.

It looks like Russia’s motivation is politically driven and the gas argument with Ukraine and the West suits Moscow’s diplomatic agenda.

The fundamental question which remains unanswered is who will value the losses of Ukraine as a result of the lost properties, land, natural resources and businesses annexed by Russia in the Crimea and the eastern Ukraine, and weigh them against the energy gas bill?

Source: Reuters